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VASEP: seafood exports could increase by nearly 5% in 2021

17/02/2021

According to Vietnam Association of Seafood Exporters and Producers (VASEP), in 2020, the country's seafood output reached 8.4 million tons, a slight increase of 3% compared to 2019, of which farming accounts for 54% with nearly 4.6 million tons, capture output accounts for 46% with over 3.8 million tons.

According to Vietnam Association of Seafood Exporters and Producers (VASEP), the COVID-19 pandemic lasted for the whole of 2020, disrupting global trade in aquatic products, changing the trend of consumption of aquatic products. The main export products of Vietnam, therefore, fluctuate according to market trends leading to an increase in exports of whiteleg shrimp, marine shrimp, marine fish, and crab, while exports of pangasius have declined deeply, exports of tuna, squid and octopus decreased slightly.

However, the main importers of Vietnamese seafood such as the EU, China, Korea, and Japan only slightly decreased their imports from Vietnam by 3-6%, while the largest market, i.e. the US still increased significantly by 10%. In addition, other markets such as Russia, UK, Australia, and Canada are still with strong increase of 10-32% for goods imported from Vietnam.

Vietnam’s seafood exports in the first quarter and second quarter of 2020 fell sharply by 10% -7%, respectively, but from the third quarter began to recover and grow. By the end of 2020, the country's seafood output is estimated at 8.4 million tons, a slight increase of 3% compared to 2019, of which seafood exports reach USD 8.4 billion, decreased by 1.9% compared to 2019. In which, aquaculture products including shrimp and pangasius accounted for 62%, reaching USD 5.2 billion, capture seafood products accounted for 38% with USD 3.2 billion.

Entering the year 2021, VASEP believes that the fisheries trade situation is still strongly affected by the COVID-19 pandemic, even though this is still the main factor that dominates Vietnam's trend of seafood export and import. However, Vietnam is still able to maintain its competitive advantage in raw material supply compared to other countries. In addition, free trade agreements will continue to be leverage for Vietnam's seafood exports to recover in some markets. Businesses will also gain experience and flexibility to adapt to fluctuations and changes in the needs and preferences of the market after a year of COVID-19.

Therefore, VASEP forecasts that seafood exports in 2021 will have better results than in 2020, estimated at USD 8.8 billion, increased by nearly 5%.

On the stock market, seafood exporting enterprises had a backward business year due to the negative impact of COVID-19. Cuu Long An Giang Fisheries Import and Export Joint Stock Company (ACL) is one of the most impacted seafood enterprises, with revenue and profit down 49% and 80% respectively compared to 2019. Specifically, net revenue reached VND 951 billion, profit after tax reached VND 28.7 billion.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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